For two decades, Honda Cars has relied upon the City to serve as its mainstay in India. But a more SUV-focussed automotive market demands that Honda rethinks its strategy and come up with a floor plan containing a stronger SUV line-up, retain trademark Honda quality and, of course, introduce EVs.
The Elevate's launch comes as a key part of Honda's strategy to launch five SUVs in the flourishing SUV market of India by 2030.
The automaker noted that hybrid technology is currently best suited for Indian conditions as it is not dependent on external charging infrastructure.
From April, the company will introduce Honda 4-stroke marine outboard motors range for boat operators targeting various government agencies engaged in maritime security, coast guard, taxi boat services for passengers and tourists, and fishermen engaged in commercial fishing in sea and inland river systems.
Honda Cars has decided to consolidate manufacturing operations for vehicles and components at its Tapukara plant in Rajasthan with immediate effect for all domestic sales and exports. All Head Office functions, India R&D Centre and Spare Parts operations, however, will continue at Greater Noida.
The 1.2 litre petrol variants of the model are priced between Rs 6.09 lakh and Rs 8.75 lakh, while the 1.5 litre diesel trims are tagged between Rs 7.55 lakh and Rs 9.95 lakh (all prices ex-showroom Delhi).
The company is reluctant to invest further towards adding capacity and is instead investing on preparing itself for the roll-out of BS-VI norms.
He said that the company is developing electric cars but to anticipate a significant number of such cars on Indian roads is early, mainly because of infrastructure and affordability.
The company has a reason to be optimistic as the fourth-generation City, launched only last week, has already notched up over 5,500 bookings as of Friday.
Japanese car major Honda India on May 6 said its brownfield expansion at Tapukara in Rajasthan is on course and the Rs 380-crore plant would be commissioned in the second quarter, which would take its total capacity to 3 lakh units from the present 2.4 lakh.
The car maker had grown by 41 percent last year. Honda India has lined up Rs 380 crore to ramp up its manufacturing capacity from 2.4 lakh to 3 lakh units, company director and senior vice president - marketing & sales, Hiroyuki Shimizu said.
Honda India's car sales multiplied 2.5 times over the past 3 fiscals, with double digit growth year-on-year.